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In the midst of its all-share merger with fellow Western Australia gold miner Silver Lake Resources, Doray Minerals has done a new deal to sell its neighbouring Andy Well and Gnaweeda gold projects to Westgold Resources for up to $A15M in cash and shares.

(MERGERS & ACQUISITIONS)
The search for scale and global visibility has driven West Australian gold miners Silver Lake Resources and Doray Minerals into a merger that will create a mid-tier regionally focused company with forecast production of over 200,000oz and a current resource base of 4.6Moz gold equivalent.

Western Australia will gain a new mid-tier, multi-asset gold producer through the newly announced plan for a merger of local miners Silver Lake Resources and Doray Minerals.The all-scrip deal will combine Doray’s Deflector mine and Silver Lake’s Mount Monger gold camp into a merged company with pro-forma production forecast of 240,000oz gold equivalent in the year to June 2019, a resource base of 4.6Moz AuEq and net cash+equivalents of $A119M.

West Australian miner Silver Lake’s strong gold production has boosted EBITDA to $A87.9M for the year to end-June, up from $70M in FY17. NPAT grew to $16.2M (FY17: $2M).Revenue was $255.5M ($227.5M) on sales of 151,250oz (137,000oz) at $1,684/oz ($1,654/oz). AISC improved to $1,289/oz ($1,359/oz).Operational cash-flow rose 26% to $80.8M, lifting year-end cash and bullion to $105.7M ($69.1M) with $8.1M listed investments and no debt.

West Australian miner Silver Lake’s strong gold production has boosted EBITDA to $A87.9M for the year to end-June, up from $70M in FY17. NPAT grew to $16.2M (FY17: $2M).Revenue was $255.5M ($227.5M) on sales of 151,250oz (137,000oz) at $1,684/oz ($1,654/oz). AISC improved to $1,289/oz ($1,359/oz).Operational cash-flow rose 26% to $80.8M, lifting year-end cash and bullion to $105.7M ($69.1M) with $8.1M listed investments and no debt.

West Australian miner Silver Lake has completed a strong year with FY18 gold production rising to 157,936oz, above guidance and 16% higher than the prior year.Costs also bettered expectations with AISC of $A1,289/oz, about 5% below FY17 and its forecast.With completion of the Imperial openpit in April and the new Aldiss Mining Centre now expected to deliver first ore in the Dec qtr, forecast FY19 production dips to 140,000-150,000oz at $1,350-1,390/oz.

A challenge by West Australian miner Silver Lake Resources to accepted geological interpretations has delivered a significant gold resource at the historic Karonie gold mine near Kalgoorlie. John Feary reports

West Australian miner Silver Lake is targeting first ore deliveries in the Sept qtr after giving final board approval for predevelopment work on the Aldiss mining centre at its Mount Monger gold project near Kalgoorlie.The Aldiss development is targeted to maintain production following the planned completion this month of the Imperial openpit mine.